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Mustard Seed Money

Mustard Seed Money

Are You Lazy When It Comes To Banking?

November 27, 2017

THIS POST MAY CONTAIN AFFILIATE LINKS. PLEASE READ MY DISCLOSURE FOR MORE INFO.

 

In 2012, my wife and I had a few money decisions to make as we combined our finances upon getting married.  The first topic of conversation was merging our bank accounts.  My wife had always had an account with BB&T, while I had left BB&T for Wells Fargo.  

 

I left BB&T in college because of a negative experience that I can’t remember for the life of me.  All I know is I was fuming as I closed the bank account in person.  

 

I’m sure they really didn’t care.  I had a grand total of $252 in my account.  They handed me my money, and I went down the street to Wells Fargo since a friend banked there.

 

My wife was really hoping to move me back towards BB&T because she liked the bankers who worked at our local branch.  Plus, the local branch was walking distance from our home.  However, I figured this was the perfect time to re-evaluate our banking situation to see what our best option was.

 

Bank Loyalty

Many people shy away from switching bank accounts.  In fact, according to a survey conducted for Bankrate and MONEY, 14% of Americans believe it is too much of a hassle to do so.

 

When I started to peruse through the various online bank accounts available, I found some terrific options.  However, at the time, my wife and I were heavily leaning towards a brick-and-mortar bank.  

 

Moving to a Completely Different Bank

After narrowing down our options, we decided to join Navy Federal Credit Union.  We had heard great reviews from friends.  Thanks to my in-law’s military service, we were eligible to bank there.

 

We have been really happy thus far, but of course it took some work to move everything over.  First, we had to make sure direct deposit was synced up to the new account.  That was an important detail!  Secondly, I had to make sure each and every bank-draft bill was updated.  I lost a little bit of sleep during that process because I was terrified to receive an overdraft bill from one I stupidly forgot to update.

 

Recently, I found out that I did a ton of extra work for no reason.  

 

Switch Kit

Ever heard of a Switch Kit?

 

Here is a quick example from NFCU below:

banking

 

A switch kit is a free service that allows you to close an account with another bank and transfer the funds to your new bank account.  It also switches your direct deposit and any automatic payments from your old account to your new account, making your life that much easier.  

 

If switching bank accounts is now that easy, why not do so?

 

The Stats

According to the aforementioned survey, the average adult in the U.S. has used the same primary checking account for 16 years.  More than 25% of Americans keep a checking account for more than 20 years, with seniors 65+ keeping a checking account for 26 years on average.  3% of survey respondents have used the same account for more than 50 years.

 

Of course, if you like your bank and are receiving great benefits, why move?  A majority of checking account holders (63%) are able to avoid paying any fees.  However, the survey found that, on average, a checking account customer pays $14 a month in fees, specifically ATM, overdraft, and routine service fees.

 

Why is that?

 

Out of network ATM withdrawal fees for 2017, inched up to almost $5 a withdrawal.  Meanwhile, overdraft fees costed over $33 per incident, according to a 2017 Bankrate checking account survey.

 

Millennials are most likely to pay checking fees, with 28% reporting that they pay more than $26 per month, on average.  Even worse, the average low-income American (defined as making less than $30,000 a year) pays charges of $31 month.

 

Additionally, only 38% of banks offer free checking accounts.  Meanwhile, 61% of banks offer free checking accounts if customers utilize direct deposits in their accounts.  

 

Incentives

Today, banks are fighting for customers by providing free money incentives for opening bank accounts.  Why not take some time to figure out if you should upgrade your bank account today?

 

I highlighted a couple just to show you some offers out there.  And no, I won’t receive any compensation if you click on them.

 

  • CHASE Total Checking: $200

 

  • BMO Harris Checking: $200

 

  • Chase Savings: $150

 

  • Citibank Checking: $300

 

  • SunTrust Checking: $300

 

  • TD Bank Checking: $300

 

So readers, with all these options out there, why not upgrade your bank account?  If you’ve switched bank accounts recently, how was your experience?  Share your thoughts below.

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34 Comments

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Comments

  1. Lily @ The Frugal Gene says

    November 27, 2017 at 6:40 am

    We are super lazy when it comes to banking. My husband was ticked off at Chase for their lack of service, buggy technology and horrible security issues. He texted me he would be switching banks but we never did out of laziness. But mark my words, we still hate Chase ;(
    Lily @ The Frugal Gene recently posted…What Writer Burnout Feels Like & How I Deal With ItMy Profile

    Reply
    • Mustard Seed Money says

      November 27, 2017 at 9:26 pm

      Thanks for sharing Lily!!! I’ve heard some people really rail against Chase but in the end don’t switch either. That was what partly inspired the post 🙂

      Reply
  2. Mrs. Adventure Rich says

    November 27, 2017 at 7:05 am

    I had no idea there was a switch kit… what a great tool! We have switched around a bit + opened an online savings account for the higher interest rate, but that is the extent of our checking/savings work. Mostly, we are lazy in this category 😉
    Mrs. Adventure Rich recently posted…What I Won’t Be Doing on Black Friday… and WhyMy Profile

    Reply
    • Mustard Seed Money says

      November 27, 2017 at 9:27 pm

      Thanks for sharing Mrs. Adventure Rich!!! I have to admit I wasn’t familiar with switch kits either. Definitely a great resource and takes out a lot of the pain with switching banks 🙂

      Reply
  3. Tom @ Dividends Diversify says

    November 27, 2017 at 7:19 am

    I’ve been a local community bank that is part of a larger network of community banks in my area. Even after moving this year, I still have access to a bank in the network even though I do most banking electronically. All I had to do was change my address and I have never paid any type of banking fee. I like credit unions and community banks for the low/no cost services they provide. Tom
    Tom @ Dividends Diversify recently posted…The Lights Are on But No One is HomeMy Profile

    Reply
    • Mustard Seed Money says

      November 27, 2017 at 9:31 pm

      Thanks for sharing Tom!!! I definitely agree I like the customer service that comes from the community banks and credit unions. Definitely makes me feel a lot better about storing my money with them 🙂

      Reply
  4. Dave says

    November 27, 2017 at 7:20 am

    We are lazy when it comes to banking. I am with PNC. My wife has an account with Peoples Security. We should merge and take advantage of what these other banks are offering. Great information.
    Dave recently posted…Frugal Fun: Community TheaterMy Profile

    Reply
    • Mustard Seed Money says

      November 27, 2017 at 9:32 pm

      Thanks for stopping by Dave!!! I am a big fan of joint accounts and getting rid of excess accounts. Hopefully when/if you decide the convert kit will help out 🙂

      Reply
  5. Justin @ Atypical Life says

    November 27, 2017 at 7:35 am

    We opened up with Ally and loved it, so have never switched away. I did migrate from all brick & mortar banks because I live in China. Simply no need since they are not available. They definitely make it a hassle to move, but many of them don’t have minimum balance fees, so you can just transfer your money and leave it open at $0. Eventually, the bank will close it from no use.
    Justin @ Atypical Life recently posted…How I Landed A 6-Figure Expat Job 2 Years Out Of CollegeMy Profile

    Reply
    • Mustard Seed Money says

      November 27, 2017 at 9:33 pm

      My wife and I keep our savings account with Ally. I love them and the interest rate that they pay. Plus they’re super easy to use 🙂

      Reply
  6. TTR says

    November 27, 2017 at 7:46 am

    How did I not know about this kit? I fall on the non lazy but “frustrasted” with the paperwork to switch but this may just fit the bill.

    Very cool post and particularly loved the statistics around loyalty.

    Reply
    • Mustard Seed Money says

      November 27, 2017 at 9:33 pm

      Glad that this helps 🙂 You’ll have to let me know if you end up switching with a switch kit and how easy/hard it is.

      Reply
  7. fin$avvy panda @ finsavvypanda.com says

    November 27, 2017 at 8:06 am

    Lol I guess I would be lazy too. I’ve been banking w/ the same bank since I was 12 years old and after graduating from school I eventually started working for them. So I guess I will be banking w/ them for as long as I’m w/ the company haha. And if I work for another bank, I’ll be forced to switch w/ them.
    fin$avvy panda @ finsavvypanda.com recently posted…10 Ways To Be Financially Prepared For Christmas – Especially #2 and #3My Profile

    Reply
    • Mustard Seed Money says

      November 27, 2017 at 9:36 pm

      Hahhaa…sounds like you are a lifer 🙂 Although if you’ve been with them since you were 12 and you’re willing to work for them they must be good!!! Thanks for sharing 🙂

      Reply
  8. Ms. Frugal Asian Finance says

    November 27, 2017 at 8:39 am

    I think Mr. FAF and I are super lazy when it comes to banking. We’re currently ok with our current bank and have no plan of switching. I just hate those random trips to the bank and having to talk to the teller and such.

    I left Wells Fargo a couple of years ago since they started charging me $8.5/mo for having less than $7,500 in my checking account. I think they were trying to get rid of low-value customers like myself. I was just furious I had to pay a fee I wasn’t informed about. @_@
    Ms. Frugal Asian Finance recently posted…6 Ways To Cut Your Utility Bills TodayMy Profile

    Reply
    • Mustard Seed Money says

      November 27, 2017 at 9:37 pm

      Wow they were charing $8.50 a month for less than $7,500 a month. That’s crazy to me. I don’t think my checking account has ever had that much in it 🙂

      Reply
  9. SMM says

    November 27, 2017 at 8:53 am

    I can’t remember the last time we paid any sort of bank fees. One thing we do pay for and yes I’m lazy and need to close it out is our safety deposit box. We pay almost $20 per year, in December, and we used to have stuff in the box but not anymore.
    SMM recently posted…Why I Prefer In Store VS. Online ShoppingMy Profile

    Reply
    • Mustard Seed Money says

      November 27, 2017 at 9:40 pm

      Thanks for sharing SMM!!! Sounds like you’ll have some plans on Friday to close the box and save $20 🙂

      Reply
  10. Dave @ Married with Money says

    November 27, 2017 at 9:47 am

    Definitely lazy, but hasn’t really been an issue. We could chase a better rate (definitely not worth the extra 0.1%) or sign-up bonuses (and those may be worthwhile) but I’m just lazy when it comes to that stuff haha.

    My bank has worked out great for me for years now, so I don’t really see a need to switch.
    Dave @ Married with Money recently posted…My Hail-Dented Badge of HonorMy Profile

    Reply
    • Mustard Seed Money says

      November 27, 2017 at 9:41 pm

      Thanks for sharing Dave!!! That’s great to hear that your bank is treating you so well. Like you I’ve been with my bank the past couple of years and have no plans to change anytime soon 🙂

      Reply
  11. Jason says

    November 27, 2017 at 11:25 am

    I am lazy, but had no idea there was a switch kit. Getting those bonuses could be a reason to change, but some of the problem is that there aren’t branches located nearby. I wish I could actually do all my banking with Fidelity, but it is a different financial institution.
    Jason recently posted…Becoming a Finance InstructorMy Profile

    Reply
    • Mustard Seed Money says

      November 27, 2017 at 9:42 pm

      Thanks for sharing Jason!!! I definitely agree that having a branch close by is nice…although I honestly don’t remember the last time I walked into a bank branch. But the thought of having one close by is still appealing 🙂

      Reply
  12. Gary @ Super Saving Tips says

    November 27, 2017 at 12:46 pm

    I switched my main bank a couple of years ago and it was fairly easy to do. Since then I’ve opened a couple of accounts just to get bonuses and had no problems with that either. I don’t pay any fees for my accounts, and I’ve managed to get bonuses for a number of accounts, so it’s worked out pretty well for me. But it’s good to hear about a switch kit as I’m sure that will help a lot of people.
    Gary @ Super Saving Tips recently posted…8 Ways We Try to Save Money That Can BackfireMy Profile

    Reply
    • Mustard Seed Money says

      November 27, 2017 at 9:44 pm

      Thanks for sharing Gary!!! Sounds like you’ve been able to pick up some great bonuses along the way. I definitely wouldn’t mind doing some bank hacking to unlock some more rewards. Definitely plan to look into a bit further. Thanks for sharing!!!

      Reply
  13. Damn Millennial says

    November 28, 2017 at 12:46 am

    I was lazy for a while and then decided to wise up! I found ally and moved the bulk of my emergency fund to them. I use Wells Fargo for my everyday checking and chase for my credit cards.

    Reply
    • Mustard Seed Money says

      November 30, 2017 at 8:41 pm

      Ally is wonderful. I was just telling a friend about how much I enjoy them. Definitely a huge fan 🙂

      Reply
  14. Jeff @ Maximum Cents says

    November 28, 2017 at 3:50 pm

    I’m sometimes lazy about moving extra money out of our checking account and into our Ally savings account. Do you move your money manually between accounts?
    Jeff @ Maximum Cents recently posted…ShopRunner Free Shipping for 2 YearsMy Profile

    Reply
    • Mustard Seed Money says

      November 30, 2017 at 8:42 pm

      I move money manually. Every time it rises above a certain threshold I move it manually. It’s worked so far for me 🙂

      Reply
  15. Andrew@LivingRichCheaply says

    November 28, 2017 at 4:08 pm

    I used to open bank accounts for the bonuses but I’m too lazy to do it nowadays…especially since it often requires adding direct deposit. As for switching, I should probably do that too but yea…it’s an account that my wife and I opened when we got married so we’ve had it for awhile. It’s also convenient but we’ve mentioned switching…not sure why we haven’t. Blame it on laziness!

    Reply
    • Mustard Seed Money says

      November 30, 2017 at 8:51 pm

      Thanks for sharing Andrew!!! There’s definitely something to be said about convenience as long as you weigh the cost 🙂

      Reply
  16. Helen @ Retire Early Helen says

    November 29, 2017 at 2:26 pm

    Good point. For the checking account, I’m not motivated to change. Not because I like the current bank, it’s just a hassle to switch. For savings or money market accounts? Absolutely. I always shop around, and find a better rate.

    Reply
    • Mustard Seed Money says

      November 30, 2017 at 9:53 pm

      Thanks for sharing Helen!!! I was surprised to see how easy convert kits were to use taking out some of the hassle 🙂

      Reply
  17. Miguel (The Rich Miser) says

    November 30, 2017 at 5:17 pm

    Hey MSM!

    I’m all for online banks. I switched to Ally about 8 years ago (for savings and checking) and have never looked back. High interest, no fees, and $10 in ATM fee reimbursements per month. I don’t deal with cash a lot, and for that reason haven’t seen a need for a brick-and-mortar bank.

    Other than that, I have a couple of credit lines open with credit unions, which I never use. I keep them for true emergencies and for the credit score boost.

    I’d never heard of a switch kit, thanks for mentioning it!

    Reply
    • Mustard Seed Money says

      November 30, 2017 at 9:55 pm

      Thanks for sharing Miguel!!! Ally is a great bank. I switched to them about two years ago and I too am really happy with the move 🙂

      Reply

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